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This is what I have so far WACC= Weightage of Equity * Cost of Equity + Weightage of Debt * Cost of Debt * (1- Tax Rate) + Weight Preferred Stock * Cost of preferred stock Market value equity (common
This is what I have so far
WACC= Weightage of Equity * Cost of Equity + Weightage of Debt * Cost of Debt * (1- Tax Rate) + Weight Preferred Stock * Cost of preferred stock
Market value equity (common stock)=
200,000 shares x $68 market value per share
Market Value Equity (Common Stock)= 13,600,000
1050 x 10,000= 10,500,000
16,000 shares x 110 per= 1,760,000
Total Market Value Common Stock/ Total Market Value All= Weight for Common Stock
N=16
Fv= 1,000
PMT= 90
PV= -1,050
=RATE(16,90,-1050,1000)= 8.42%